Definition of Normative Economics

Normative economics involves assertions about what should be; by contrast, positive economics attempts to understand what actually is. For example, an economist arguing that the United States ought to expand the government food stamps program in order to help the poor is making a normative argument. An economist studying how changes in the food stamps program affect the daily calories consumed by poor people is conducting positive analysis. Critics of the normative/positive distinction point out that economic researchers' normative biases inevitably influence the focus of their positive analysis.